Resolution Urging Congress to Permanently Extend the 2001 and 2003 Tax Cuts

Summary:

This resolution encourages Congress to permanently extend the Tax Cuts of 2001 and 2003. [Economic Growth and Tax Relief Reconciliation Act of 2001 and Jobs and Growth Tax Relief Reconciliation Act of 2003.] Allowing these tax cuts to expire will undoubtedly slow the growth of the U.S. economy, and further harm America’s ability to compete in the global marketplace.

Resolution:

WHEREAS, the tax cuts of 2001 and 2003 have spurred economic growth and allowed the spirit of entrepreneurship to flourish, while creating new jobs and opportunities for millions of Americans, and

WHEREAS, American taxpayers from all income groups have seen their tax liabilities diminish from pre-2001 levels, and

WHEREAS, if the 2001 and 2003 tax cuts are allowed to expire, much of the economic growth made possible by the tax cuts would no longer be sustainable, and

WHEREAS, the economically damaging federal estate tax will rise to a confiscatory top marginal rate of 55 percent in 2013, if the tax relief is allowed to expire, and

WHEREAS, allowing the tax cuts of 2001 and 2003 to expire would result in a significant decline in gross domestic product, reduced dividend and wage income, increased cost of capital, fewer hours worked, and a lower level of private-sector output, and

WHEREAS, it is projected that the expiration of the 2001 and 2003 tax cuts would result in a tax increase of [Insert Number] for residents in [Insert State], and

NOW THEREFORE BE IT RESOLVED, that the legislature of the state of [Insert State] urges the United States Congress to permanently extend the tax cuts of 2001 and 2003.

Technical corrections approved by the ALEC Board of Directors, January 29th, 2013